R2016-28 TO APPROPRIATE MOTOR FUEL TAX FUNDS

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PUBLIC WORKS MEMORANDUM NO. 2016-OS DATE: March 10,2016 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Richard G. Marley, P.E., Public Works Director SUBJECT: Allocation of Motor Fuel Tax Funds for Municipal Maintenance Costs SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution appropriating $666,000.00 in State Motor Fuel Tax (MFT) funds dedicated to general street maintenance, and that the Mayor be authorized to sign said resolution, and the City Clerk to attest. Items covered by this allocation specifically include: • Reimbursing the General fund for annual traffic signal maintenance costs ($480,000), • Providing concrete for street maintenance work performed by City forces ($20,000), • Purchasing road salt to support the City's winter maintenance operations ($166,000). PRIOR COUNCIL ACTION: Each year the City Council appropriates State Motor Fuel Tax (MFT) funds for general street maintenance operations. In 2014, the City began including road salt as part of the yearly MFT expenditure estimate. This allocation is identified each fiscal year in the City's Capital Improvement plan. BACKGROUND: Traffic Signal Maintenance For many years the City has allocated State MFT funds to reimburse the General Fund for the traffic signal maintenance operations performed by the Public Works Department. The funds cover the salary and benefits of two City Electricians,the costs for their vehicles, materials used,traffic signal electricity costs, and contracted services. The Illinois Department of Transportation(IDOT) reimburses the City for a portion of the maintenance work, materials, and electricity costs incurred for maintaining traffic signals located on State highways in the City. These reimbursements are deposited into the MFT fund. The amount of the transfer was determined by the Finance Department during budget preparation based on actual expenditures the previous year. Concrete for Street Maintenance In 2013, the City began allocating State MFT funds to provide concrete for street maintenance work performed by City staff with the Public Works Department. City crews are able to perform concrete repairs at a lower cost than can be obtained by contracting out similar work. Increasing the materials available for concrete repair work improves the ability of the City to maintain its street system and stretch its limited funds further. Page � 1